Causes of Uncertainty in Logistic Operations of FMCG Industry in Pakistan A thesis submitted By Faisal Abbasi (4983) To Department of Business Administration

In partial fulfillment of The requirement for the De ree of !A"T#$ %F B&"I'#"" AD!I'I"T$ATI%' In "upply (hain !ana ement This thesis has been A))epted by the fa)ulty FA(&*T+ %F B&"I'#"" AD!I'I"T$ATI%'

"yed Ali $a,a Ad-isor

"yed Tehseen .a/aid !ana er $esear)h

Chapter 1

1. Introduction
1.1. Background In the present era of rapidly )han in mar0et )onditions1 the )ompetition is also ro/in to an ad-an)ed le-el thus mana ers ha-e to maintain a broader -ie/ for mana in their responsibilities and parti)ular roles in a fun)tional supply )hain net/or0234ro-ided that transportation is a ma5or means to )onne)t )ustomers /ith their )ompanies1 a ood )ustomer -alue is only enerated if

effi)ient operations are in-ol-ed for transportation3 In supply )hain mana ement1 element of un)ertainty in day to day )hores 6 pro)esses al/ays pro-es to be a barrier in su))essful operations and mana ement a)ti-ities 738arious models for un)ertainty ha-e been de-eloped by most of resear)hers /here the prime fo)us /as based on manufa)turin 3 This point should be 0ept in -ie/ that the effe)t of transport /as ta0en insi nifi)antly inside supply )hain traditionally 33 $eferrin to those frame/or0s1 the -ariable of transport /as not ta0en as an a)ti-e )omponent3 It is -ery important to e-aluate all the elements of un)ertainty present in supply )hain and their influen)e on the operations of transport sin)e it someho/ is a ood measure of performan)e in lo isti)s operations3 F!(9 (Fast mo-in )onsumer oods) belon to those items /hi)h are )onsumable in nature and are pur)hased on re ular basis3 !a5or a)ti-ities of this
1 2

Stank and Golsby, (2000). Mason-Jones and Towill, (1998) 3 Stank and Goldsby, (2000)

sort of industry are mar0etin 1 sellin 1 pur)hasin 1 finan)in et)3 %n the other hand1 it is also dire)tly related to operations1 produ)tion1 supply )hain as /ell as mana ement3 As the industry pro-ides a hu e -ariety of su)h produ)ts1 the amount of /ealth )ir)ulated pertainin to these )onsumables is also hi h3 4ast trend in 4a0istan sho/s that in-estment in this se)tor has in)reased in order to remain )ompetiti-e and e-er: ro/in 3 ;o/e-er in the re ion )onsiderin )hallen es and un)ertain en-ironment1 the se)tor of F!(9 in 4a0istan has still maintained a remar0able ro/th in sales and in term of re-enues1 )learly sho/in si nifi)an)e of the efforts made by the /or0for)e to rab the potential of lo)al mar0et3 In the last fi-e years )ountry has fa)ed numerous problems1 in parti)ular1 po/er outa e and ener y )risis3 The effe)t of these problems /as quite dominant1 )ausin 9D4 to o do/n and risin inflation /ith time thereby de)linin the ratio for ta<: to 9D43 In-estment la)0ed in this se)tor but on the other side the element of un)ertainty has to be )onsidered43 The element of ris0 also in)reases by the le-el of un)ertainty present in en-ironment of supply )hain3 %ur main ob5e)ti-e is to fi ure out the un)ertainty model referrin to transport and in-entory mana ement as per the perspe)ti-e of supply )hain1 and to )he)0 /hi)h -arious types of un)ertainty=s impa)ts on mis)ellaneous operations in this industry3 1.2. Pro !e" #tate"ent #<tensi-e studies and resear)hes ha-e been done to identify the root )auses of un)ertainty /ith respe)t to lo isti)s operations )onsiderin
4

the fun)tion of

T e !ews T"ibe-22 Ma"# 2012

transport and the operations only assumin ne li ible impa)t of other fun)tions3 As1 most of the people )onsider it as a ma5or )ontributor /ith respe)t to all other fun)tions in lo isti)s3 4ast studies /hen ta0en into a))ount sho/ed that ma5or fa)tors related to transport in day to day a)ti-ities effe)tin operations are

)onstraints related to deli-ery1 poor information e<)han e for flu)tuations in demand1 la)0 of inte ration and )oordination1 delays1 poor plannin /ith respe)t to e<ternal fa)tors su)h as /eather )onditions1 la/ and order situation in the desi nated routes and ener y )rises be)ause of una-ailability of fuel3 These /ere some of the hi hly influential fa)tors )ontributin to un)ertainty3 ;o/e-er there is still some room for resear)h re ardin un)ertainty in operations lo isti)s as pre-ious resear)hes /ere limited to the impa)t of transport operations only3 To surpass that1 no su)h resear)h has e-er been )ondu)ted in 4a0istan3 ;en)e1 )onsiderin the lo isti)s fun)tion of in-entory mana ement /ith transportation operations1 )he)0in the )auses for un)ertainty in operations has also been )onsidered so as to ha-e a profound -ie/ of the F!(9 industry in 4a0istan3 1.$. %esearch O &ecti'e The ob5e)ti-e of this study is to identify different types of un)ertainty impa)tin on in-entory mana ement and transport mana ement under lo isti) operations in F!(9 industry of 4a0istan3

1.(. %esearch )uestion 23 >hat are the )auses of un)ertainty in transportation mana ement of F!(9 Industry? 73 >hat are the )auses of un)ertainty in in-entory mana ement of F!(9 Industry? 1.*. #cope of the #tudy The s)ope of this resear)h )ondu)ted is to deri-e the root )auses for un)ertainty in in-entory mana ement and transportation mana ement for lo isti)s operations3 The findin s of this study /ill definitely hi hli ht the need and importan)e of )onsiderin the o-erall fun)tion of lo isti)s /hen fa)in un)ertainty )hallen es3 For instan)e1 /hen on:time deli-ery and quality is the top priority than the )arrier and the shipper6manufa)turer as far as the )ustomer is )on)erned3 Further1 this study /ill also define the si nifi)an)e of dealin e<ternal fa)tors to be )onsidered by mana ers alon /ith the internal issues under -arious situations3 ;o/e-er the simple and effe)ti-e approa)h is to fa)ilitate and a))ommodate them /ith in your strate ies1 simply put1 under the umbrella of your operational oals and plans3 ;o/e-er1 the area of s)ope is still a-ailable for )on)erned people su)h as poli)y ma0ers to e-aluate and finally identify /ays in order to redu)e to et optimi,ation for resour)es and )ustomer satisfa)tion )onsiderin the operations for lo isti)s3 1.+. Li"itation of the study

The study has been )onstrained only for F!(9 Industry in 4a0istan3 The re ion sele)ted for this purpose /as restri)ted to @ara)hi1 as /ell as the sample si,e )onsidered for the industry is limited3 The study has been )ondu)ted in a short period of time1 further due to its -arious limitations su)h as all type of resour)es and time period3 Also1 responses are only )olle)ted throu h primary mode /hi)h is in depth inter-ie/s for e-aluatin the per)eptions for this resear)h3

Chapter 2 Literature %e'ie,

2. Literature %e'ie,

2.1. -heoretica! Background

2.2. ."pirica! #tudies

Bennett A@lu

(7B27) ha-e dis)ussed in detail about inte ration in

lo isti)s net/or0 bet/een the suppliers and assemblers referrin to automoti-e : industry3 They used -ariables su)h as shared in-estment1 transport system1 information sharin and inte ration1 asset spe)ifi)ation1 eo raphi)al pro<imity and sequen)e or -olume related to deli-ery )ontents3 These all -ariables /ith the aid of pre-ious resear)hes and studies /ere )onsidered for dedu)in the e<a)t findin s3 $esults supported the rele-ant studies of inter:)ompany and )ross a spe)ified

or ani,ational inte ration bet/een the suppliers by sho/in

ben)hmar0 for su)h )ross:fun)tional )omparisons ho/e-er still there is a ap for /hi)h understandin of different studies related to types of lo isti)s inte ration for results e-aluation3 ;o et al3 (7B27) e-aluated the 0ey fa)tors /hi)h stand responsible to attra)t many of the industries to )onsider and then pra)ti)e the re-erse lo isti)s in order to attain )ompetiti-eness3 A sample of 9B firms /as )onsidered to ather the required data3 For this purpose a questionnaire /as de-eloped in order to et the response and per)eption of or ani,ations for re-erse lo isti)s3 8ariables )onsidered for the purpose /ere support from human resour)e1 finan)e resour)e1 re)o nition /ith respe)t to re-erse lo isti)s3 "upply )hain role1 o-ernment

support1 indi-idual per)eption for re-erse lo isti)s and a )ombination of internal and e<ternal fa)tors /as also )onsidered3 $esults later on su ested /ith the

)onsideration of statisti)al analysis that both the inside and outside fa)tors do attra)t the per)eption for its implementation3 It /as ad-ised that the resour)es /hi)h are tan ible in nature don=t ha-e a ma5or influen)e ho/e-er or ani,ations pra)ti)in relationship and effe)ti-e )ooperation )an o for the option for its implementation3 *iu et al. (7B27) /or0ed on phenomena to use a or ani,ed model for thin0in to predi)t and then elaborate the ris0 and )ost of outsour)in lo isti)s3 4ast trends and studies /ere thorou hly )onsidered to enerate a dynami) model for inte rated systems referrin to outsour)in to analy,e the )han)es of ris0 and poli)y )onsiderations for a span of lon run3 8ariables )onsidered for this purpose are )ost for ne otiations1 s/it)hin )osts1 )ost for administration1 lo isti)s

)apability1 and )han)es of un)ertainty and outsour)in )osts3 All the )onsidered -ariables /ere used to analy,e a systemati) based model to rab the attention for the implementation based on system dynami)s and further ho/ from it you )an a-ail the desired results3 ;alldorssonA @o-a)s (7B2B) in-esti ated /hat a )ompany referrin to supply )hain and lo isti) pro-ider should implement referrin to )limate )han e for its present and up)omin impli)ations3 A )on)eptual based frame/or0 /as ho/e-er )onsidered that in rele-ant )onte<t defines its importan)e on the early and effe)ts /hi)h are tan ible in nature on "(! pra)ti)es and performan)e of lo isti)s3 8ariables )onsidered foe the study are )limate )han e1 disruption s in supply )hain1 en-ironmental sustainability1 humanitarian lo isti)s and use of natural resour)es3 All of the -ariables )onsidered /ere studied in detailed /ith the fa)tors )onsidered and past pra)ti)e )onsidered in different rele-ant resear)hers3 $esults demonstrated that the element of effi)ien)y related to ener y has been mostly )onsidered unimportant e-en ne le)ted in "upply )hain mana ement and lo isti)s for /hi)h thin0in in depth and )onsiderin its /orth at the le-el of operations should be de-eloped and should be )onsidered in your strate y1 to remain )ompetiti-e espe)ially in the lo isti)s /hi)h has to deal its operations in di-erse )limates /ith pro-idin the same optimal le-el of standards and )onsumer satisfa)tion /hi)h is al/ays the demand enerated in this respe)ti-e industry3 ;sio et al3(7B2B) e<amines the fa)tors to de-elop a model /hi)h /ill help mana ers in order for ma0in and implementin re ardin de)ision oriented

)riteria for the reason of outsour)in related to the a)ti-ities of lo isti)s relatin to

the food industry3 The sample of 38C )ompanies /as )onsidered for data eneration 3>ith the help of pre-ious resear)hes and theories a sur-ey /as )ondu)tin to e-aluate issues /hi)h are responsible for outsour)in set of -arious a)ti-ities3 8ariables /hi)h are ta0en are Food quality1 distribution )hannels -ariety1un)ertainity measurement1 no of produ)ts a firm is dealin in 1demand referrin to un)ertainity1fle<ibility1 no of international )ustomers1)ost1pa)0a in and )omple<ity in supply )hain3 $esults su ested and indi)ated to/ards the

dire)tion that a)ti-ities )onsidered for the outsour)in in lo isti)s at different types of areas and le-els are usually outsour)ed for s reasons /hi)h are not similar in nature dependin on numerous fa)tors for /hi)h the study su ested

that referen)e related to the spe)ifi) studies are required mostly for )ost minimi,in related to transa)tion1 mana ement pra)ti)es /hi)h are related /ith supply )hain and for the optimi,ed used for the resour)es a-ailable under an area or spe)ified pro)ess3 ;a,en et al3 (7B2B) identified the important 0ey -ariables refers to identify a lo i)al based frame /or0 for the de)ision ma0in )riteria related to the

disposition in the pro)ess of re-erse lo isti)s referrin to or ani,ations /hi)h are a)ti-ely en a ed in this pro)ess3 "tudies related to the area of s)ope from past from the time spe)ified 7BBB :7B2B /ere studied in depth and from /hi)h the issues and )auses /ere )onsidered /hi)h may or really impa)t to the )riteria of de)ision ma0in pra)ti)es for disposition of produ)ts a))ordin to their respe)ti-e )ate ory3 8ariables )onsidered for this study /ere disposition1 simulation1 model1 and return of produ)ts1 methods used for re-erse lo isti)s1 periods spe)ified for

/arranty and

uarantee and in last life of the produ)t spe)ified by the

manufa)turer itself3 All of these -ariables /ere used as 0ey -ariables to fin the rele-ant studies and past resear)hes to study in more depth to e-aluate all the possible out)omes3 $esults enerated /ith this te)hnique and methods the

resear)hers e<plored some of the rele-ant de)ision oriented model for disposition in the pro)ess of re-erse lo isti)s1 /hi)h )an be used in present and /ill remain -alid in the )omin time relatin it to future requirements de)ision fa)tors related to their spe)ified -ariables3 $odri ues et all3 (7BB9) e<amines the elements of lo isti)s un)ertainty by in-esti atin its sour)es and )auses under the area of supply )hain3 A

methodolo i)al strate y trian ulation oriented and a desi ned questionnaire /as used to deri-e the results38aribales su)h as fuel effi)ien)y 1 handlin fa)tor 1

number in empty run1 a-era e load on trips 1 modal split 1 fuel effi)ien)y /ere used as -ariables 3$esults su ested that bullets /hi)h impa)t the transport and its aps in )ommuni)ation and fa)tors leadin

operations are deli-ery issues 1

to/ards delays and la)0in of inte ration in supply )hain1 these all elements affe)t the produ)ti-ity3 It /as su ested ho/e-er proa)ti-e steps throu h

)omparison bet/een e<ternal and internal analysis )an be used to redu)e the un/anted aps3

;ofer A @nemeyer (7BB9) ha-e in-esti ated to fi ure out the issues and then to ha-e a )ontrol referrin to the )omple<ities /hi)h may arose to )on)lude a standard eneral lo isti)s s)ale and then to -alidate3 Data /as athered by

)onstru)tin a set of s)ale based on the dis)ussions and meetin s /ith spe)ialists in field and help of past related resear)hes3 "ample of 7DC lo isti)s pro-idin firms /as )onsidered by throu h a sur-ey )ondu)ted on /eb oriented type ta0en from different mana ers and employees:test and mono-a test /as used to )onfirm the pre:post response and other desired output3 $esults pro-ided the response rate flu)tuated means a si nifi)ant differen)e )ame bet/een the pre and post respondents1 ho/e-er the resear)h pro-ided a s)ale /hi)h )an either be used by resear)hers in e-aluatin the )omple< issues enerally related to lo isti)s e-en )onsiderin it a)ross the different industries3 @eebler A 4lan0 (7BB9) ha-e des)ribed in detail the standard )onsidered for measurement of operations and performan)e related to lo isti) )ompanies3 A sample of 313BB different firms a)ross 7C industries /as )onsidered3 A trian ulation method in)ludin a Delphi te)hnique and further by their

identifi)ation te)hnique a sur-ey throu h questionnaire /as also pra)ti)ed throu h the sele)ted respondants38ariables for the questionnaire /ere sele)ted /hi)h /ere )ustomer satisfa)tion1 order )y)le time1 on:time deli-ery1 no of )omplaints by )ustomer1 a))ura)y in fore)ast1 response time1 order fulfillment1 measures in-ol-ed internally1 effi)ien)y measures1 utili,ation and produ)ti-ity 3$esults sho/ed that most of the firms found it un ne)essary to measure and e-aluate )he)0 on performan)e ho/e-er it /as su ested that the emphasis

related to the performan)e should be i-en /ithin the or ani,ation itself to et the desired results not referrin or )omparin /ith others or a)ross the industry3 +eun et al. (7BBD) in-esti ated in detail /ith the a-ailable options in terms of strate i) de)isions to build a relationship /ith strate i) measures oin for the de)ision of differentiation for usin it as a finan)ial toolE for the

operations and their related performan)e of the lo isti) )ompanies3 Data /as athered throu h quantati-e measures and buy obtainin from a questionnaire from 2C )ompanies /or0in for lo isti)s 3(luster analysis and te)hniques of

A''%8A /ere used to find the results from the data used for the output3 8ariables used for this purpose relati-e position pri)e1 position of )ost1 deli-ery reliability1 mar0et penetration1 quality and ser-i)e fle<ibility3 $esults pro-ide that the lo isti) )ompanies /ho define their strate ies and implement them on differentiation on bases of performan)e and )ost fa)tor are more su))essful as )ompared to others3 $ahman (7BBD) ha-e /or0ed in detail to in-esti ate the methods and /or0 is used in )ompanies /ith referen)e to the mana ement pra)ti)es in -ie/ of quality and at the optimum le-el3 A frame/or0 /as )onsidered as an instrument for data atherin from different )ompanies /or0in pro-idin lo isti)s

operations1 retail shops and from people /ho are in-ol-ed in manufa)turin business1 total in 3CB in number 3A one:time -isit /as )onsidered 0no/n as primary mode /as used for data eneration 38ariables )onsidered for this resear)h are no of order )y)les1 no of transa)tions1 no of dama ed oods1 no of deli-eries rea)hed on:time and no of trustable suppliers3 $esults su ested the -aluable

findin s /hi)h tells that there are fa)tors su)h as la)0 of edu)ation and trainin to the employees1 )ulture )han e1 poor adaptability and le-el of resistan)e are some hi hli hted fa)tors /hi)h restri)ts proper implementation of quality standards and pro rams in su)h or ani,ation 1ho/e-er it /as su ested that deli-ery of and

shipments on:time is the 0ey fa)tor /hi)h brin s mana ement /or0in operations on the basis of quality fa)tor3 (heun (7BBD) ha-e in-esti ated by fo)usin

on lo isti)s operations

/hi)h are related to ser-i)es for proposin an automated:based system to impro-e and build up for optimi,ed used of resour)es in ser-i)es lo isti)s3 4re-ious studies and past resear)hers /ere athered in relation /ith the @no/led e:

oriented automated system3 8ariables )onsidered for these purposes throu h the implementation of system are performan)e measurement perspe)ti-e1

pro)urement 0no/led e1 automated ser-i)e and ser-i)e in lo isti)s perspe)ti-e3 Findin s /ere a sample foe )he)0 of )ustomer ser-i)e /as su))essfully installed and implemented /ith the help of the model1 further the model /ith the help of past e<perien)e and 0no/led e pro-ided and effi)ient response base for pro-idin )ustomer satisfa)tion1 thus enhan)in the response le-el for a )ustomer of an or ani,ation "ri-asta-a A "ri-asta-a (7BBD) in-esti ated on the area to )on)lude a desired frame/or0 for the re-erse lo isti)s by mana in and or ani,in the

produ)ts a))ordin to their type and )ate ory3 A sample si,e of 84 )ompanies /as )onsidered 3Inte rated and )on)eptual set of models /ere )onsidered /ith the help of the studies dis)ussed in past to )on)lude the results3 The -ariables /hi)h /ere

ta0en are data o/nership of produ)t1 demand fore)asted1 nature of impa)t related to e<ternal fa)tors and past sales3 $esults )on)lude that frame /or0 de-eloped if applied on inte rated basis helps to maintain the produ)ts for dealin further it helps the mana ement in effe)ti-e de)ision ma0in for e-aluatin the ne)essary a)tion to be ta0en for the required produ)t under )lassifi)ations3 Forslund (7BBD) in-esti ated to find the )han)es of o))urren)e and then re)tify the aps in lo isti)s performan)e present in the pro)ess /hi)h is related to order deli-ery3 A sample total of 23D )ompanies related to manufa)turin and suppliers /ere )onsidered3 A )on)eptual oriented model /ith the aid of past studies /hi)h /as built )onsiderin the performan)e fa)tor related to ser-i)es pro-ided and further measurin it by a au e under the lo isti)s /as )onsidered1 -ariables )onsidered for this study are no of a))urate orders1 le-el of in-entory a-ailable promised1 on:time deli-ery1lead:time1information a-ailable related to delay1 order fulfillment pro)edures3 $esults ho/e-er identified some of the aps /hi)h /ere related to a)tual and desired )ustomer le-el satisfa)tions /hi)h are normally )aused by the un)ertainty issues related to /or0in and performan)e1 beside o-er estimation referrin to suppliers in a))ordan)e /ith the performan)e /as also obser-ed3 *ai (7BBD) findin s /ere on to )he)0 the fa)tor information te)hnolo y /ith its influen)e on the basis of third party lo isti)s for )ompetiti-e and prominent ad-anta e o-er others in the industry3 Total of 274 different lo isti) )ompanies /ere sele)ted for atherin the si nifi)ant data3Fuestionaire oriented sur-ey /as )hosen for the response from the respondents3 (onfirmatory option for

Fa)tor analysis and $e ression /as used 38ariables sele)ted /ere related to IT /ere )ompeten)y1 resour)e effort1 -alen)e1 ser-i)e -ariety ad-anta e and )ost ad-anta e 3$esults pro-ide the results /hi)h tell that the effe)ts and the influen)e referrin to the use of te)hnolo y are non:linear and further its impa)t on the performan)e and operations of the firms are found si nifi)ant in nature3 Fredri0son (7BBD) in-esti ated the -arious issues /hi)h arise in lo isti)s and operations /hi)h are assumed important re ardin the routine pro)ess and /or0 related to assembly /or03 >ith the help of detailed past resear)hes and findin s the -ariables )onsidered /ere then used to study in depth3 They used the -ariables su)h as produ)tion plannin 1 assembly balan)e flo/1 flo/ )ontrol module1 de-iation handlin and disad-anta es refereed to small units3 $esults pro-ed that the related pro)ess )onsidered )omes up /ith irrele-ant output related to stru)ture /hen resour)e and their basi) needs are not /or0in in an inte rated manner3 ;o/e-er the findin s restri)t to the )ompanies /hi)h normally )onsider su)h type of )ompli)ated stru)ture a))ordin to the /or0 demanded3 (aputo et al3 (7BBD) /or0ed on to )ome up /ith a method by optimi,in the resour)es to plan shipment routes throu h minimi,in the respe)ti-e )osts3 4rimary mode /as )onsidered in order to et the response from a multi

operational plant firm /or0in from the shipments and operations related to the deli-ery 3(onsiderin the -ariables al orithm depri-ed model /as used in order to find the means of ho/ a or ani,ation to minimi,e the )osts3 8ariables /hi)h /ere used are optimal list of shippin output1 modes of shippin 1 /ei ht deli-ered and number of )ustomer orders3 $esults su ested and affirmed that the desired

)al)ulated )on)lusions depri-ed )an a)tually help if itGs also applied or used in real life )ases by su)h of the or ani,ations to a)hie-e the Full :tru)0 Hloads /ith less )osts3 $onald A $o ers (7BBD) ha-e dis)ussed the real life options a-ailable referrin to usa e for appli)ations of transportation and lo isti)s3 Data /as

ali ned for the )onsideration of frame/or0 to )onstru)t an output3 In their resear)h they ha-e used the -ariables /hi)h in)lude transportation mana ement1 te)hnolo y1 shippin sto)0s1 lo isti)s operations and mana ement1 frei ht lane and distribution mana ement3 All of these -ariables /ere studied in depth /ith the )onsideration of past resear)hes3 $esults demonstrate that the frame/or0 /hi)h is bein )onsidered is similar to sto)0 option and )ommodity3 It is further identified that /ith the uidan)e from the frame/or0 the shippers see0 to buy transportations options form a-ailable options than to send the )orre)t shipment3 *emb0e A $o ers (7BBD) ha-e in-esti ated to su est a model /hi)h /ill

enhan)e the dire)tions a-ailable for future )ommitments for a-ailin resour)es in lo isti)s3 8ariables /ere thorou hly dis)ussed based on the past related resear)hers to define a )on)eptual oriented model3 8ariables /hi)h /ere )onsidered deli-ery1 pi)0in 1 de)ision ma0in related to fle<ibility1 impa)t on )arrier1 benefits to 34* and impa)t on shipper3 Findin s /ere as li0e )ommodity or sto)0 options that it i-es an opportunity to shipper to pur)hase the desired mode for /hi)h the )ompany o/ns the ri ht and is 5ust not bound to depart a parti)ular shipment throu h any )hannel at a defined future )ost and time3

Brah A *im (7BBC) in-esti ates the )auses /hi)h led to the performan)e in lo isti)s due to TF! and te)hnolo y3 4rimary mode of information atherin /as preferred from a sample ta0en on random basis 37C )ompanies ser-in in lo isti)s in the year 7BB2:7BB73Fa)tor analysis 1 re ression te)hnique 1reliability analysis /as used by ta0in the -ariables quality 1performan)e1 te)hnolo y ested the fa)tors

performan)e and e<ternal quality determinants3 $esults su

te)hnolo y and TF! led to hi h performan)e1 ho/e-er the aid of te)hnolo y implementation supports the operations for lo isti)s in -arious /ays3 !a A "u (7BBC) /or0ed on to identify a model /ith -arious produ)ts for lo isti)s operations net/or03 4rimary style of method /as used for ali nin of data3 !odel for in-entory plannin 1 model !I41shipments and -ehi)le route model /ere used by )onsiderin the -ariables )apa)ity of produ)t for retailer 1 produ)t demanded1 a-era e in-entory le-el1 number of retailers and )ost of deli-ery referrin to the produ)t3 The findin s later on su ested that the

)onsidered s)ope do satisfy the required le-el as ha-e the ability of a))urately e-aluatin the parameters related to the operations and stru)ture of lo isti)s /hi)h the ability of adaptin itself /ith the un)ertainties3 Bolumole (7BB3) ha-e /idely tal0ed about the e-aluatin the role of

supply )hain of the ser-i)e of lo isti)s pro-iders3 In their study1 they ha-e in)orporated -ariables in)ludin operational le-el fun)tions1 transa)tional

relationship1 internal: fo)us1 )ost based per)eption and lo isti)s3 These -ariables /ere then thorou hly studied /ith the help of past resear)hes3 Data assemblin /as done and the re ression analysis is impli)ated to dedu)e the results3 The shift

ha-e been seen from the fun)tional and traditional third party lo isti)s to the )omprehensi-e supply )hain relationships ha-e impli)ations o-er the third party lo isti)s ser-i)e pro-iders entitled as 34*" model3 It is also au ed /ith the help of re ression analysis that strate i) orientation and out sour)in in the

or ani,ation ha-e sho/n the e<tent of relationship /ith these e-aluated fa)tors3 ;a et al. (7BB3) ha-e dis)ussed re ardin the deli-ery and pri)e issues for bein )ompetiti-e in lo isti)s in the supply )hain3 >ith the referen)e of past resear)hes these -ariables /ere studied in detail3 8ariables su)h as deli-ery1 lo isti)s1 5ust:in:time1 pri)in 1 supplier mana ement1 in-entory1 supply )hain )ompetition ha-e been used3 Findin s )on)lude that 5ust in time and qui)0 responsi-e deli-eries )an assure )ompany to be in a state of ha-in a )ompetiti-e ad-anta e o-er others3 >ith the findin s of the frequen)y analysis it /as further )on)luded that the po/er of di)tation remains in the hand of )ustomers not suppliers for the deli-ery of the ser-i)e or produ)ts Dempsteret et al. (7BBB)ha-e tal0ed /idely about the lo isti)s operations and its related plannin in oil industry3 (onsiderin all these -ariables linear pro rammin model sto)hasti) in nature is used for implementation for result findin s3 8ariablessu)h as lo isti)s1 plannin at ta)ti)al and strate i) le-el1

demand of the produ)t1 ener y1 spot supply )ost and supply )hain mana ement3 3Data /hen e-aluated sho/ed that model D$%4" is applied to obtain the results and for finally obtainin a deterministi) lo isti)s model3 It is also au ed /ith the help of e<aminin throu h sto)hasti) linear: pro rammin that lo isti)s /ith model D$%4" is required ne<t to re)onsider and other

questions and impli)ations are important to be studied and then dis)ussed /ith detail analysis3 "tan0et al. (2999)ha-e tal0ed about the inte ration of lo isti)s and mar0etin )onsiderin performan)e of any firm3 >ith the help of past resear)hes these -ariables /ere then studied thorou hly in their study1 they ha-e in)orporated -ariables in)ludin performan)e relati-e to )ompetition1 )ombined inte ration bet/een lo isti)s and the mar0etin )onsiderin mar0etin or lo isti)s and per)ei-ed effe)ti-eness relationship33 Data

interdepartmental

assemblin /as done and the Frequen)y dimensions analysis is impli)ated to dedu)e the results3 Findin s sho/ed that the fun)tional areas of any firm should be inte rated )onsiderin for plans1 )ommuni)atin strate ies and then their

implementation )on)ludin the pro)ess should /or0 as a /hole3 It is also au ed /ith the analysis that inte ration in all fun)tions is the 0ey to remain )ompetiti-eness and a)hie-e profitability3

Chapter $ Methodo!ogy

$. Methodo!ogy

$.1. %esearch /pproach For the purpose Fualitati-e approa)h has been sele)ted for this type of resear)h3 >hen findin s )annot be identified or enerated by the help of statisti)al tools and pro)edures than qualitati-e approa)h is sele)ted for the purpose3 ItGs basi)ally an e-aluation of the per)eption1 past e<perien)es1 from )urrent pra)ti)es ta0en from the indi-iduals re ardin to the )ultural or so)ial aspe)ts3 From applyin the approa)h /hi)h is qualitati-e /e basi)ally )on)entrate on the routine a)ti-ities and so)ial s)ien)es /hi)h are a)tually the thin0in per)ei-ed or idea enerated by the respondentC3It is usually )onsidered throu h inter-ie/s ta0en fa)e to fa)e /hi)h are in depth in nature for understandin their per)eption and the root )ause behind that parti)ular response3 The resear)her for this parti)ular reason has opted for this )hoi)e as the purpose of the study is to fi ure out the )auses for un)ertainty found in the operations of lo isti)s for F!(9 Industry of 4a0istan $.2. %esearch Purpose >hen the issue or your desired ob5e)ti-e is not -isible or )lear than e<ploratory resear)h is ob-iously )onsiderd3In most of the resear)hes it )on)ludes that the
$

%otte" (199&)

stated or )on)ern problem la)0 the e<isten)e3 >ith the help of past resear)hes and ideas bein enerated it /or0s on de-elop a )on)lusion from the problems bein

dis)ussed for )urrent era3 Its dependen)y ho/e-er is des)ribed by the qualitati-e approa)h3 The basi) purpose of this resear)h is to de-elop a le-el of thirst inside the resear)her to de-elop a better understandin D1 then it tests out the possibility to an ad-an)er le-el and in last it i-es and de-elop a -ariety of options that )an be used in future for broader resear)h3 3 $.$. %esearch 0esign The resear)h desi n is 0no/n as phenomenolo i)al resear)h desi n as referrin to e<perien)es /hi)h are shared by the respondants3This resear)h a)tually tries to fi ure out for a better understandin form the a)tions and past e<perien)es

obser-ed by the them1 a)tually /e try to 5ud e from their 5ud ment33 In real all is shared and in return the resear)her obser-es and notes the feelin s1 tones and e<perien)e shared from the respondentI3For ettin the desired information in depth dis)ussions by inter-ie/s /as athered from their a)tual e<perien)es3 $.(. 0ata #ource Thus the data /ill be )olle)ted from the )ompanies referrin to F!(9 Industry li0e 23 "han Foods 73 I9*%% i)e )ream
& )

J'(((200&) %inne*a" and +a,ilton (2009)

33 $e)0itt Ben)0iser 4ri-ate *imited 43 #B! 3For the data eneration the method /ill be of in:depth inter-ie/s from the respondents /or0in inside the lo isti) operations3 $.*. -arget Popu!ation The population )onsidered for this purpose of resear)h /ould be the mana ers /ho are dire)tly or indire)tly in-ol-ed /ith the transportation and in-entory mana ement inside the operations of lo isti)s of or ani,ations inside industry of F!(93 $.+. #a"p!e #i1e The si,e of the sample )onsidered for the rele-ant purpose is four inter-ie/s /hi)h are ta0en in depth from the middle line mana ers of the )ompanies of F!(9 : Industry pla)ed in @ara)hi3 $.2. 0ata Co!!ection -echni3ue The te)hnique for )olle)tion of data is by obser-in in:depth inter-ie/s1as this resear)h is refereed to qualitati-e and resear)h te)hnique /hi)h is used is phenomenolo i)al3 By ta0in inter-ie/s for ta0in out in depth information from different )ompanies of all rele-ant e<perien)es and pra)ti)es they obser-e for the )auses /hi)h led to un)ertainty in the operations3

$.4. #a"p!ing -echni3ue Te)hnique applied for this resear)h is )on-enien)e samplin 3 ItGs bein applied as itGs found to be more reliable for the purpose1 further it is most )ommon and -ery easy to implement on lar e sets of population3 Its features li0e bein fast1

ine<pensi-e1 ease of a-ailability of respondents and simple to )ondu)t ma0es it more )on-enient for the resear)h3

%eferences5

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